California Assemblymember Damon Connolly (D-San Rafael) has introduced new legislation to reduce fees and taxes on residential solar projects and restore incentives to Californians that were recently diminished by the California Public Utilities Commission (CPUC)’s NEM 3.0 decision.
NEM 3.0 cut the incentives that utilities were required to pay solar homeowners when pushing surplus power to the grid by approximately 75%, plummeting demand for solar adoption throughout the state and threatening many solar installation businesses. In addition to the projected loss of 17,000 jobs, NEM 3.0 has also jeopardized California’s ability to meet its ambitious clean energy goals.
Assembly Bill (AB) 2619 will repeal the NEM 3.0 decision and require the CPUC to create a new rule structure based on the clean energy goals set by Senate Bill (SB) 100, which committed the state to achieving 100% clean carbon-free energy by 2045. AB 2619 will ensure that incentives are restored for residents who generate clean power for the grid and restrict the imposition of new charges, taxes, fees or rates on community solar customers that are different from what is assessed on all other ratepayers for electricity or any other service including energy transmission.
“When talking with North Bay residents and Californians throughout the state, it’s clear that additional taxes on solar and the removal of incentives that have helped offset the cost of solar installation has had severe consequences on our ability to generate clean energy,” said Assemblymember Connolly. “The NEM 3.0 decision has clearly disincentivized clean energy adoption with rooftop solar sales down between 66 to 83% and thousands of workers left without good-paying jobs. AB 2619 will restore our commitment to a sustainable, clean energy future and provide relief to Californians who are suffering under these new rules. We must commit to our goal of achieving 100% carbon-free energy by 2045.”
NEM 3.0 went into effect in April 2023. An analysis conducted by Wood Mackenzie estimates that the residential solar market in California will be cut in half by this year and payback periods for typical residential solar projects will increase from five to six years to 14 to 15 years, depending on the utility company. Additionally, according to a survey by the California Solar and Storage Association, these decisions have reduced rooftop solar sales between 66 and 83% compared to the same time in 2022. Additionally, nearly 43% of solar companies surveyed in California said it would be difficult to stay in business over the winter.
“We’re pleased to see Assemblymember Connolly taking seriously the issues facing the rooftop solar industry and addressing issues with the current Net Billing Tariff to ensure that California remains on track to meet its net zero emissions goals,” said Stephanie Doyle, California state affairs director at the Solar Energy Industries Association (SEIA). “Over the last year, the California rooftop solar and storage industry has struggled to adjust to the abrupt changes to California’s net metering program. The new bill would require the California Public Utilities Commission to develop a new solar tariff by 2027 and prohibit new fees on solar customers, helping to ensure that the solar market in California continues to grow. We will continue to work with California lawmakers to educate them on the impact of the CPUC’s Net Billing Tariff and other ways we can help the residential solar market thrive in California.”
AB 2619 now awaits assignment to a policy committee in the State Assembly.
News item from Assemblymember Connolly
I signed up for Solar under NEM 2 on Feb 7, 2023 but recently I received a letter from PGE stating that they were transferring me to NEM 3 because I had signed up after April 14. I called them and I was looking at my contract with the FEb 7 date on it while they were trying to tell me I signed up in May. They also said they weren’t going to change it and to talk t the solar company which is stupid because the solar company can;t do anything about my PGE account since PGE won’t talk to anyone but the account holder.
I’m sure I’m not the only one they are trying to do this to.
The contract signed with Solar company is different than the application approved date by PG&E. If you signed in Feb then I doubt the solar company had time to get the contract approved. For example, I signed in Oct 2022 and I almost didn’t make the cutoff date. It was so close that I had solar installed in April while SCE was still in the backlog reviewing my solar design.
NEM 3 should never have been implemented! We finally decided in May 2023 to get solar but could not afford to buy even though there were incentives offered, so we decided to lease. It doesn’t seem CA lawmakers are concerned for the people of our state, it boils down to favoring the utility companies and making money off the people of CA. Residents give excess energy from our solar systems but credited for it by only 25% (or less) of cost back to the resident. Shame on the leaders of our state!
I sure hope AB2619 will pass and help CA residents who have solar systems by giving us a much better net metering plan. Edison did not even have their NEM 3 in place until December 2023 and we activated our system a week or two after.
Do not punish those CA residents for trying to help with our carbon footprint and making CA a better place to live! At least one CA lawmaker cares!
It has become very evident that the CPUC in bought and payed for by SoCal Edison and PG&E. The CPUC has never refused a rate increase requested by the utilities. Sounds like the old Mafioso in NYC or Chicago. It’s time for some changes. I wonder if the members of CPUC are in the same boat as tRUMP and his sex with women that are not his wife!!!
NEM 3.0 was the worst decision possible. I can’t believe these morons passed it
I can’t believe it happened. I was an installer in the solar trade for 15 years, from 21 to 37 of my life; I was about to start a company and got my c-10 license, and then this happened. I thought a 30% federal tax credit from the government meant subconsciously. They were going to keep backing us up, making sure we had a thriving renewable energy construction trade. But I should have looked into it more than just trusting the nature of the beast would not prevail. Life lesson, I guess it’s only about the money; it was a good move for the utility companies. Twenty years of playing along, and now they will have to pay the same amount they buy from the natural gas company with 32% efficiencies per kWh. But now, from off customers’ roofs solar 100% efficiency per kWh, with lower transmission losses. Not to mention in a couple of years with bidirectional charging from E/V’s. The only reason I’ve seen people get batteries when I installed them was for power outages. Those cars hold the equivalent of roughly 7 home batteries, so that’s a good three days of power outage, and then take the vehicle to the nearest fast charging station if power is still out. I don’t think customers will want battery backup on their home. They’ll use their car when needed. I am now a first year apprentice electrician getting paid the same I was at 22 years old, Life is crazy, Stay on your toes!
2027 will be too late.
Is it not strange that commissioners appointed by the State Governor, would allow the CPUC to pass NEM3 and so sabotage the States plans to cut damaging emissions, and which has benefited the three major power suppliers in California.
This bill must be fast tracked, passed and implemented as soon as possible, for the benefit of all Californians, not just a small number of “Public” Utilities.
“The new bill would require the California Public Utilities Commission to develop a new solar tariff by 2027”
This assumes the solar installers will survive the next 3 years.
Mahalo for reporting on this Kelly!
I am so glad this bill has been drafted. I hope it passes. California made a blunder when it ended NEM 2.0. It forgot that customers with solar panels are the ones most likely to invest in heat pumps and electric vehicles.
So true. Adoption of EVs will be badly impacted by this. I personally have a Chevy Volt and no longer avoid using gas. I used to charge it religiously. Now that electric rates have gone up so much and solar isn’t practical, I run it sometimes on electricity, sometimes on gas and have scratched my plans to buy an EV. It doesn’t make sense anymore.
Once again the oil companies with their deep pockets find new ways to
steal from the public!
Boo hoo for these private own UTILITY COMPANIES who found another way to rip off and profit from people who have found a way to cut costs of utilities which are out of this world in costs and yet the UTILITY COMPANIES are showing massive profits!
The Sun is FREE! Citizens who want to cut their carbon footprint and help save the planet as well as SAVE MONEY in the HIGH COST of pollution causing UTILITY COMPANIES!
I APPLAUD Damon Conally for standing up for Californians!
It’s about tme someone stands up to the PUC, they all should be fired